Zimbabwe Economy Profile - Doing Business 2020
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Doing Business 2020 Zimbabwe
Economy Profile
Zimbabwe
Page 1
Doing Business 2020 Zimbabwe
Economy Profile of Zimbabwe
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and
the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers Flexibility in employment regulation and redundancy cost
Page 2Doing Business 2020 Zimbabwe
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.
The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
To learn more about Doing Business please visit doingbusiness.org
Page 3Doing Business 2020 Zimbabwe
Ease of Doing Business in DB RANK DB SCORE
Region Sub-Saharan Africa
Zimbabwe
Income Category Lower middle income
Population 14,439,018 140
54.5
City Covered Harare
Rankings on Doing Business topics - Zimbabwe
67
97
109
140 142
146
159
167 167 169
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Topic Scores
72.0 60.0 48.6 59.5 65.0 54.0 58.7 54.3 39.7 32.9
Starting a Business (rank) 167 Getting Credit (rank) 67 Trading across Borders (rank) 159
Score of starting a business (0-100) 72.0 Score of getting credit (0-100) 65.0 Score of trading across borders (0-100) 54.3
Procedures (number) 9 Strength of legal rights index (0-12) 6 Time to export
Time (days) 27 Depth of credit information index (0-8) 7 Documentary compliance (hours) 99
Cost (number) 76.6 Credit registry coverage (% of adults) 8.8 Border compliance (hours) 88
Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 50.2 Cost to export
Documentary compliance (USD) 170
Dealing with Construction Permits (rank) 140 Protecting Minority Investors (rank) 97 Border compliance (USD) 285
Score of dealing with construction permits (0-100) 60.0 Score of protecting minority investors (0-100) 54.0 Time to export
Procedures (number) 10 Extent of disclosure index (0-10) 8.0 Documentary compliance (hours) 81
Time (days) 178 Extent of director liability index (0-10) 2.0 Border compliance (hours) 228
Cost (% of warehouse value) 12.6 Ease of shareholder suits index (0-10) 5.0 Cost to export
Building quality control index (0-15) 10.0 Extent of shareholder rights index (0-6) 6.0 Documentary compliance (USD) 150
Extent of ownership and control index (0-7) 3.0 Border compliance (USD) 562
Getting Electricity (rank) 167 Extent of corporate transparency index (0-7) 3.0
Score of getting electricity (0-100) 48.6 Enforcing Contracts (rank) 169
Procedures (number) 6 Paying Taxes (rank) 146 Score of enforcing contracts (0-100) 39.7
Time (days) 106 Score of paying taxes (0-100) 58.7 Time (days) 410
Cost (% of income per capita) 1,400.6 Payments (number per year) 51 Cost (% of claim value) 83.1
Reliability of supply and transparency of tariff index (0-8) 0 Time (hours per year) 242 Quality of judicial processes index (0-18) 6.5
Total tax and contribution rate (% of profit) 31.6
Registering Property (rank) 109 Postfiling index (0-100) 52.4 Resolving Insolvency (rank) 142
Score of registering property (0-100) 59.5 Score of resolving insolvency (0-100) 32.9
Procedures (number) 5 Recovery rate (cents on the dollar) 17.5
Time (days) 29 Time (years) 3.3
Cost (% of property value) 7.3 Cost (% of estate) 22.0
Quality of the land administration index (0-30) 10.0 Outcome (0 as piecemeal sale and 1 as going 0
concern)
Strength of insolvency framework index (0-16) 7.5
Page 4Doing Business 2020 Zimbabwe
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization)
The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days) polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
-Is managed by one local director.
• Procedure is considered completed once final document is -Has between 10 and 50 employees one month after the commencement of operations, all of them
received
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate.
capita) -Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice The owners:
Paid-in minimum capital (% of income per capita) -Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Page 5Doing Business 2020 Zimbabwe
Starting a Business - Zimbabwe
Standardized Company
Legal form Private Limited Liability Company
Paid-in minimum capital requirement No minimum
City Covered Harare
Indicator Zimbabwe Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedure – Men (number) 9 7.4 4.9 1 (2 Economies)
Time – Men (days) 27 21.5 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 76.6 36.3 3.0 0.0 (2 Economies)
Procedure – Women (number) 9 7.5 4.9 1 (2 Economies)
Time – Women (days) 27 21.6 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 76.6 36.3 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 9.3 7.6 0.0 (120 Economies)
Figure – Starting a Business in Zimbabwe – Score
52.9 73.4 61.7 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Zimbabwe and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
84.9: Zambia (Rank: 117)
80.1: Regional Average (Sub-Saharan Africa)
76.2: Botswana (Rank: 159)
74.4: Tanzania (Rank: 162)
72.0: Zimbabwe (Rank: 167)
69.3: Mozambique (Rank: 176)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Page 6Doing Business 2020 Zimbabwe
Figure – Starting a Business in Zimbabwe – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
60
25
Cost (% of income per capita)
50
20
40
Time (days)
15
30
10
20
5 10
0 0
1 2 3 4 *5 *6 *7 8 *9
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 7Doing Business 2020 Zimbabwe
Details – Starting a Business in Zimbabwe – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Reserve the company name with the Chief Registrar of Companies 5 days USD 5
Agency : Chief Registrar of Companies
Forms are available online but all documents must be physically lodged at Companies and Deeds
Registry. There is now provision to upload documents online without having to physically lodge the
documents at the Deeds and Companies Registry. After submitting the forms online it is possible
to receive a result via CV4 Form which is sent to the email address used.
The reservation is valid for 30 days and can be extended for another 30 days for an additional fee.
If paid via mobile money platform, the fee is U$5.56.
2 File the memorandum and articles of association with the Registrar of Companies 12 days see procedure details
Agency : Registrar of Companies
The law provides for model or boilerplate articles of incorporation. On the date of incorporation,
the Registrar of Companies must be notified of the appointments of the company’s directors and
secretaries. This is done by filing the particulars of the directors and secretaries and any changes
therein or a list of directors and principal officers (Form CR 14). These documents must be
accompanied by a duplicate original or a printed notarized copy.
Registration Fee is US$ 5 for every US$ 100 or part thereof of the nominal/authorized capital of
the company with a minimum fee of US$ 100.
In practice, companies usually start up with a low amount of capital to avoid the exorbitant stamp
duty. A company may also issue shares at a premium to circumvent the requirement.
3 Open a bank account 1 day no charge
Agency : Bank
Business founders must open a bank account before registration with the Tax Authorities.
4 Register with the tax authorities for income tax, VAT, and PAYE 4 days no charge
Agency : Zimbabwe Revenue Authority
Upon formation, a company must register at the regional Zimbabwe Revenue Authority Office. A
copy of the company’s certificate of incorporation is required for the Collector's records, along with
the memorandum and articles of association and a certified copy of the identification of the
assigned public officer. The company will be issued a registration number, as well as the current
tax tables and the pay-as-you-earn (PAYE) receipt books. The P8 and P6 Forms now must be
generated by the applicant and are not freely available. The ITF 16 Form must be completed in
consultation with the Income Tax Office. According to Zimbabwe’s Finance Act (as amended),
companies must now budget to pay all their company tax within the trading year. The tax must be
paid as follows: 10% by the 25th of March, 25% by the 25th of June, 40% by the 25th of
September, and the balance of the estimated tax for the tax year by the 20th of December.
Firms with a turnover of US $60,000 must register for VAT with the Zimbabwe Revenue Authority
(ZIMRA). An application must be submitted for a Certificate of Registration (Form VAT 1), which,
along with Forms VAT 2 and VAT 3, is found at ZIMRA Web site (www.zimra.co.zw). Firms with a
turnover of less than US $60,000 may apply for voluntary VAT registration.
5 Register with the National Social Security Authority for pension and Accident Prevention 1 day (simultaneous with no charge
and Compensation Scheme previous procedure)
Agency : National Social Security Authority
The employer and the employee must each contribute 3.5% of employee the gross monthly
salary.
6 Register with the Manpower Development Fund 1 day (simultaneous with no charge
Agency : Manpower Development Fund procedure 4)
Employers must register with, and contribute 1% of their wage bill to, the state-run Manpower
Development Fund. The fund allows employers to recover expenses when employees complete
training.
7 Pick up the form of license application notice from the City Health Department 1 day (simultaneous with no charge
Agency : City Health Department procedure 4)
The entrepreneur then retrieves the license application notice form from the City Health
Department. This application can now be downloaded from the website and there is no longer a
need to pay for its collection.
8 Submit an application form for the issuance of new licenses to the Licensing Office in 5 days USD 471
Harare Municipality
Agency : Licensing Office in Harare Municipality
One copy of the application forms are submitted. Depending on the type of businesses, the
Licensing Office can seek a report from the Harare Town Planner to ensure that the application is
consistent with the zoned use of the premises.
9 Receive inspection by the Licensing Officers 1 day (simultaneous with no charge
Agency : Licensing Office in Harare Municipality previous procedure)
Officers inspect the company site to check if the workplace premises are suitable for the intended
use. The verification criteria used by the officers are specified in the relevant bylaws.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2020 Zimbabwe
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule The warehouse:
- Will be used for general storage activities, such as storage of books or stationery.
• Procedure is considered completed once final document is
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2) The water and sewerage connections:
• Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
infrastructure, a septic tank in the smallest size available will be installed or built.
• Quality control after construction (0-3)
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
Page 9Doing Business 2020 Zimbabwe
Dealing with Construction Permits - Zimbabwe
Standardized Warehouse
Estimated value of warehouse USD 89,500
City Covered Harare
Indicator Zimbabwe Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 10 15.1 12.7 None in 2018/19
Time (days) 178 145.4 152.3 None in 2018/19
Cost (% of warehouse value) 12.6 8.9 1.5 None in 2018/19
Building quality control index (0-15) 10.0 8.9 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Zimbabwe – Score
80.0 56.2 37.1 66.7
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Zimbabwe and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
75.6: Botswana (Rank: 44)
73.2: Mozambique (Rank: 61)
72.1: Zambia (Rank: 67)
60.0: Zimbabwe (Rank: 140)
58.5: Regional Average (Sub-Saharan Africa)
57.9: Tanzania (Rank: 149)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Page 10Doing Business 2020 Zimbabwe
Figure – Dealing with Construction Permits in Zimbabwe – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
10
160
Cost (% of warehouse value)
140 8
120
Time (days)
6
100
80
4
60
40
2
20
0 0
1 2 3 4 5 6 *7 8 9 10
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 11Doing Business 2020 Zimbabwe
Figure – Dealing with Construction Permits in Zimbabwe and comparator economies – Measure of Quality
14
12.0
12 11.0
10.0 10.5 10.0
10
Index score
8.9
8
6
4
2
0
Zimbabwe Botswana Mozambique Tanzania Zambia Sub-Saharan
Africa
Details – Dealing with Construction Permits in Zimbabwe – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request and obtain approval from the Inspector of Factories 30 days USD 895
Agency : Inspector of Factories
Before an application for approval of building plans can be submitted to the local authority,
approval must first be obtained from the Inspector of Factories. This is a separate application and
carries its own application fee, established by the Inspector. The approval period is not less than
30 days. The cost is 1% of the project value.
2 Request and obtain building plan approval by the Harare City Council 30 days USD 7,966
Agency : Harare City Council
BuildCo must submit the following documents at the same time: the building permit application,
the application for the factories inspection, the TPD-1 form for the planning permit (only if needed
which is not the case for the Doing Business case study), and the architects' and structural
engineers' drawings and certificates to the relevant local authority for approvals, under the
Regional, Town, and Country Planning Act and the model building bylaws. The application must be
accompanied by a completed set of plans for the structure, prepared by a qualified draftsman or
architect.
The application is circulated for approval to all departments, including the Department of Works,
Highways and Works, Chemical Laboratory and Trade Waste, City Planning, Water and
Sewerage, Land Survey, Traffic Engineering, Valuation and Estates, Department of Health,
Department of Fire, Department of Housing and Community Services, and Zimbabwe Electricity
Supply Authority (ZESA).
Each agency contacts the applicant directly for clarification or rectification, if required. Once all
agencies have accepted the plans, the Chief Building Inspector makes a final assessment and
issues an approval of building plans to the applicant. The form contains a commencement of work
notice that must be submitted by the applicant once the footings are ready for inspection.
Subsequently, all phases of the construction must be approved by the Building Inspectorate.
Procedural and approval costs are either 1% or 1.75% of the construction cost, but this varies
from one authority to another. The time required for the entire procedure depends on the local
authority; in Harare, it is usually not less than 6 months and can be up to a year.
Because the approval cost is based on a percentage of the total construction cost, a certain
amount is paid based on the estimated cost. However, the local authority may ask for the
difference between the estimate and the actual cost at the end of the project (a common
requirement). The cost of completion depends on whether the developer is prepared to fund the
pre-purchase option. In addition, many developers close an insurance bond with the building
contractor on the value of the construction materials.
Should construction works commence prior to the approval of the building plans the local authority
now imposes a "Regularisation Fee", or fine, of US$5,000.
3 Request and receive inspection from Building Inspectorate upon completion of foundation 30 days no charge
Agency : Building Inspectorate
Delays frequently occur because the City of Harare inspectors cannot get transportation to inspect
a site. Even if offered a lift to the site by the contractor or consultant, the inspectors are not
allowed to accept it because they are not insured for travel provided by a third party.
Theoretically, inspections are conducted once a month. A final inspection will occur only if
specifically requested (but is required for obtaining the occupancy permit). Theoretically, the
builder must stop construction until the inspection is conducted, but doing so is impractical. The
City of Harare inspectors generally allow a structural engineer to cover the inspections of
foundations. In practice, since 2007 due to lack of fuel and means of transportation, inspections
are no longer conducted. Companies use their own engineers for inspections during construction.
4 Inform the Building Inspectorate of the completion of drainage installation 1 day no charge
Agency : Building Inspectorate
The officially required inspection almost never happens unless the fuel is provided for
transportation.
Page 12Doing Business 2020 Zimbabwe
5 Request and receive inspection from the Building Inspectorate upon completion of 14 days no charge
structure
Agency : Building Inspectorate
As of 2007, inspections are undertaken by the Chief Building Inspector and a deputy inspector.
This change, implemented after allegations that the lower officers were requesting facilitation
payments, has caused the time required for this inspection to increase.
6 Request and receive inspection by the Building Inspectorate upon completion of 30 days no charge
construction
Agency : Building Inspectorate
Inspectors will visit the site only if there is fuel for vehicles, or the applicant provides
transportation. Once the inspection has taken place, a protocol is written, which generally takes 30
days.
7 Request and obtain water and sewage connection from Zimbabwe National Water Authority 1 day USD 2,390
(ZINWA)
Agency : Zimbabwe National Water Authority (ZINWA)
In 2007, municipal water supplies have been taken over by a new authority, the Zimbabwe
National Water Authority (ZINWA). Obtaining a new connection now requires proof of ownership of
the stand and account clearance on any other water billing and is undertaken by the developer (in
this case BuildCo) or its agents.
Separate applications are made by the construction company for water and sewerage
connections. There may be an additional charge for this determined by the local authority.
BuildCo completes and lodges an application for a “new water connection and supply” form,
available at the Water and Sewerage Branch of ZINWA. In addition to the form, BuildCo must
provide the following:
• A letter of commitment addressed to the Director of Works stating BuildCo’s intention to proceed
with a connection
• A statement of the quality of water required, to determine the appropriate pipe size and meter
needed
The branch will issue the applicant a T.W. number and notate the application form. A receipt for
the application specifying the fees to be paid is issued. Fees come in two parts, a supply deposit
and a connection fee, and would be USD 626.00.
The applicant must take the notated application form and the receipt to the City Treasury Office,
pay the required fees, and have the branch receipt machine-endorsed with the payment.
The cost depends on the type of water supply required. The applicant must purchase the water
meter; ZINWA are no longer able to supply water meters. Application, connection fee, and account
deposit amount to USD 1,764.00 for a 25-milimeter connection. There is no charge for the
application, but there is an upfront charge before the connection is made.
The embossed receipt and the application form are returned to the branch, which requests that a
job number be issued by the Costing Office. The branch then issues a Location Advice internally
for the work to be undertaken. The applicant is required to complete an Installation of Water
Service form indicating the site of the connection.
Where fire hose reels on site are required (a requirement under the building bylaws for any
industrial/warehouse building exceeding 400 sq. m. in floor area), a 2-inch (50mm) water meter is
required.
8 Request occupancy certificate 1 day no charge
Agency : Local Authority
9 Request and receive inspection from the local Fire Department on fire equipment 7 days no charge
installation for occupancy certificate
Agency : Fire Department and Building Inspectorate
Approval by the Fire Department is required to obtain an occupancy permit. Inspections are made
by appointment only. At least one week’s notice is required most of the time. The same issues as
with other inspections apply (no transportation, long delay). Therefore, in practice, the architect or
draftsman picks up the inspector and brings the inspector to the site. Otherwise, it might take
weeks before the inspector visits the site.
10 Obtain occupancy certificate 35 days no charge
Agency : Local Authority
An occupancy certificate is issued by the local authority once the project is complete and
inspected by the Fire Department and the Building Inspector.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2020 Zimbabwe
Details – Dealing with Construction Permits in Zimbabwe – Measure of Quality
Answer Score
Building quality control index (0-15) 10.0
Quality of building regulations index (0-2) 1.5
How accessible are building laws and regulations in your economy? (0-1) Free of charge; Not 0.5
easily accessible.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0
accessible website, brochure or pamphlet? (0-1) documents; Fees to
be paid; Required
preapprovals.
Quality control before construction index (0-1) 0.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing By law, there is no 0.0
building regulations? (0-1) need to verify plans
compliance; Civil
servant reviews
plans.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various 1.0
phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 0.5
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer. 0.5
(Latent Defect Liability or Decennial Liability)? (0-1)
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 0.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain
insurance .
Professional certifications index (0-4) 3.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans Minimum number of 2.0
or drawings are in compliance with existing building regulations? (0-2) years of experience;
University degree in
architecture or
engineering; Being a
registered architect or
engineer; Passing a
certification exam.
What are the qualification requirements for the professional who supervises the construction on the ground? (0- University degree in 1.0
2) engineering,
construction or
construction
management; Being
a registered architect
or engineer.
Page 14Doing Business 2020 Zimbabwe
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:
• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
• Does not include time spent gathering information
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.
• Value added tax excluded The monthly consumption:
The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
• Tools to monitor power outages (0–1) (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
• Regulatory monitoring of utilities’ performance (0–1)
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial warehouse in case
study
*Note: Doing Business measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Page 15Doing Business 2020 Zimbabwe
Getting Electricity - Zimbabwe
Standardized Connection
Name of utility Zimbabwe Electricity Transmission and Distribution Company (ZETDC)
Price of electricity (US cents per kWh) 12.4
City Covered Harare
Indicator Zimbabwe Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 6 5.2 4.4 3 (28 Economies)
Time (days) 106 109.6 74.8 18 (3 Economies)
Cost (% of income per capita) 1400.6 3,187.5 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 0 1.6 7.4 8 (26 Economies)
Figure – Getting Electricity in Zimbabwe – Score
50.0 61.7 82.7 0.0
Reliability of supply and transparency of
Procedures Time Cost
tariff index
Figure – Getting Electricity in Zimbabwe and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
74.9: Tanzania (Rank: 85)
71.7: Mozambique (Rank: 103)
62.1: Zambia (Rank: 129)
59.5: Botswana (Rank: 139)
50.4: Regional Average (Sub-Saharan Africa)
48.6: Zimbabwe (Rank: 167)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Zimbabwe – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1600
100
1400
Cost (% of income per capita)
80 1200
Time (days)
1000
60
800
40 600
400
20
200
0 0
1 *2 3 *4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
Page 16Doing Business 2020 Zimbabwe
reflected here, see the summary below.
Figure – Getting Electricity in Zimbabwe and comparator economies – Measure of Quality
6
5
5
4 4
Index score
4
3
2 1.6
1
0 0
0
Zimbabwe Botswana Mozambique Tanzania Zambia Sub-Saharan
Africa
Page 17Doing Business 2020 Zimbabwe
Details – Getting Electricity in Zimbabwe – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to ZETDC and await right-of-way approvals and quotation 40 calendar days USD 0
Agency : ZETDC
The application is submitted by the client/electrical contractor in person, along with a copy of the
Company Registration Certificate. After the application is submitted ZETDC will be working on
issuing the quotation to the client. At this point ZETDC will also seek and obtain way leave
approvals from the Municipalities
2 Await and receive external site inspection by ZETDC 1 calendar day USD 0
Agency : ZETDC
An external site inspection is carried out by the utility to determine the “supply termination point”
and if/ or whether additional material is needed.
3 Purchase material for external works 19 calendar days USD 0
Agency : Local providers
Customers need to buy transformers and switchgear for the utility from local providers.
Transformers have to be of ZETDC approved type.
4 Obtain internal wiring inspection by ZETDC 4 calendar days USD 0
Agency : ZETDC
On completion of the internal installation the electrician notifies ZETDC and request an internal
wiring inspection by submitting the completion form. Electrical standards are issued by the
Standards Association of Zimbabwe (SAZ) and ZETDC and requires that ZETDC to do an
inspection.
5 Obtain installation of transformer by ZETDC 9 calendar days USD 24,947.8
Agency : ZETDC
The transformer is installed by the utility and does the connection between the internal sub-
distribution board in the warehouse and the meter board.
6 Obtain meter installation and electricity flow from ZETDC 38 calendar days USD 122.5
Agency : ZETDC
The meter is installed by a separate team other than the one doing the connection works. This
team does a live test of the connection, tests the cable pressure, installs the meter and energizes
the connection.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2020 Zimbabwe
Details – Getting Electricity in Zimbabwe – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 10.0
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://zetdc.co.zw/zetdc-
tariffs/
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2020 Zimbabwe
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
- Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
• No prior contact with officials
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 20Doing Business 2020 Zimbabwe
Registering Property - Zimbabwe
Indicator Zimbabwe Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 5 6.1 4.7 1 (5 Economies)
Time (days) 29 51.6 23.6 1 (2 Economies)
Cost (% of property value) 7.3 7.3 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 10.0 9.0 23.2 None in 2018/19
Figure – Registering Property in Zimbabwe – Score
66.7 86.6 51.3 33.3
Procedures Time Cost
Quality of the land administration index
Figure – Registering Property in Zimbabwe and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
65.8: Botswana (Rank: 82)
59.5: Zimbabwe (Rank: 109)
53.6: Regional Average (Sub-Saharan Africa)
53.4: Mozambique (Rank: 136)
50.1: Tanzania (Rank: 146)
49.3: Zambia (Rank: 149)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Page 21Doing Business 2020 Zimbabwe
Figure – Registering Property in Zimbabwe – Procedure, Time and Cost
Time (days) Cost (% of property value)
4.5
4
25
Cost (% of property value)
3.5
20
3
Time (days)
2.5
15
2
10 1.5
1
5
0.5
0 0
1 2 *3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 22Doing Business 2020 Zimbabwe
Figure – Registering Property in Zimbabwe and comparator economies – Measure of Quality
12
10.5
10.0
10 9.0
Index score
8 7.5 7.5
7.0
6
4
2
0
Zimbabwe Botswana Mozambique Tanzania Zambia Sub-Saharan
Africa
Details – Registering Property in Zimbabwe – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 The conveyancer prepares the draft deed, power of attorney to pass transfer as well as 2 days USD 3,580;
declarations for signing by buyer and seller (Conveyancer’s fees: 4%
Agency : Conveyancer property value +15% VAT)
Upon payment of transfer fees to the conveyance, he will draft a proposal deed of transfer (in
duplicate) deriving the powers to do so from the signed and witnessed agreement of sale. In
drafting the proposal transfer deed the conveyancer will always refer to the deed from the seller
and other information from the Deeds Office. The proposal must also refer to the diagram deed
which will be annexed to the first transfer deed.
The documentation shall include:
Declaration by seller and by purchaser (for stamp duty purposes)
Sale agreement
Power of Attorney to make the transfer
A search of the property title is conducted by the Lawyer at the Land Registry
Conveyor fees are determined according to the following scale pursuant Law Society of Zimbabwe
By-laws S.I. 24/2013 with effect since March 1st, 2013:
US$ 400 on first US$ 10 000.00 and under
4% on next US$ 10 000.00 - US$ 250 000.00 of value,
3% on next US$ 250 000.00 - US$ 500 000.00,
2% on next US$ 500 000.00 - 1 000 000.00
1% on next US$ 1 000 000.00 and above
2 The seller applies for the rates clearance certificate to the local authority under whose 14 days USD 500; (USD 500
jurisdiction the property falls (Approx average for high
Agency : Local Authority density suburb, though
This application is performed by a conveyancor (fees already covered by Procedure 1). The local
rates constantly increase))
authority will provide an assessment of how much is payable by way of advance rates and
outstanding rates, if any. In Zimbabwe there is at the moment no land tax, instead rates are paid
to the local authority. So every property in Zimbabwe is subject to these rates paid by the property
owner to the municipality or any other local authority for the services provided, like refuse, sewage
etc. Before one can transfer a property all the rates due should be paid to the local authority, so it
depends on outstanding amount due to the municipality. The rates in Zimbabwe are based on the
value of the property, size and whether there are improvements or not. It is also important to note
that the value of the property is a function of the location of the property. For the property we are
talking about the rates would therefore be around USD 500. When the seller pays the outstanding
rates payment he receives what is known as the rates clearance certificate. These rates are paid
by the purchaser as pro forma costs, which will then be reimbursed by seller on the date of the
transfer for the advance rates paid calculated on pro-rata basis from the date of payment to date
of transfer (where purchaser does not have vacant possession or occupation prior to transfer
since in this event risk and profit in the property has usually passed in terms of the agreement of
sale.)
The rates account number has to be supplied in the letter to the rates department. The local
authority will only need to be furnished with details of the seller and buyer and their present postal
or physical addresses, and description of the property being transferred. The amount to be paid
will be dependent on whether there are any rates in arrears plus no less than 3 months rates paid
in advance.
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